US President Donald Trump has said he does not expect renewed clashes with Iran to last long, seeking to calm fears of a wider conflict after a fresh round of strikes and counterstrikes rattled the region. His comments came as markets and governments weighed the risk of escalation.
The latest flare up follows months of tension centred on the Gulf and the vital shipping lanes that run through it. Each incident has raised concern about the safety of energy supplies and the possibility of a miscalculation drawing in other powers.
Iranian officials have warned that they will respond to any attack on their territory or interests, while Washington has said it is prepared to defend its forces and allies. The rhetoric on both sides has left little room for the kind of quiet diplomacy that has eased past standoffs.
Analysts caution that even a short burst of fighting can have lasting effects, from higher oil prices to damaged infrastructure and hardened positions. For now, the focus is on whether both governments can step back before the confrontation widens into something harder to contain.
